Banking Regulation Act, 1949 and RBI Act, 1934
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One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
In which year was the Banking Regulation Act enacted?
The Banking Regulation Act was enacted in 1949 to regulate and supervise the banking sector in India.
Under Section 17 of the BR Act, 1949, what minimum percentage of net profit must a banking company transfer to the Statutory Reserve Fund before declaring a dividend?
20% of net profit
In which year was the Reserve Bank of India Act enacted?
The Reserve Bank of India Act was enacted in 1934, establishing the legal framework for the functioning of the RBI.
Under Section 19(2) of the BR Act, 1949, a bank's shareholding in any company is capped at 30% of that company's paid-up share capital or 30% of the bank's own paid-up capital and reserves — which applies?
Whichever is less
Can the RBI make loans or advances to the general public?
No, the RBI cannot make loans or advances to the general public, as Section 19 of the RBI Act, 1934 lists this among the businesses the Bank cannot transact.
What does Section 4 of the RBI Act, 1934 specify about the capital of the Reserve Bank of India?
It fixes the capital of RBI at ₹5 crore
Which section of the RBI Act prohibits the Bank from engaging in commercial undertakings?
Section 19 of the RBI Act, 1934 prohibits the RBI from engaging in commercial undertakings and making loans or advances to the general public.
Which section of the RBI Act, 1934 grants the RBI the sole right to issue bank notes?
Section 22
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